Which statement about economic systems is most accurate?

• A. Private ownership dominates in a market economy.
• B. The government does not regulate prices in a mixed economy.
• C. A central government makes economic decisions in a planned economy.
• D. All choices are wrong.

Answer: (C)

Decision authority shapes how an economic system works. In a planned economy, the central government directs what gets produced, how resources are allocated, and often sets prices. That defining role is what makes the statement about a central government making economic decisions the most accurate one here.

In contrast, a market economy relies on private owners and free exchanges to guide production, and a mixed economy involves government involvement (including price regulation) alongside market activity. So the claim that the government does not regulate prices in a mixed economy isn’t correct. And because there is at least one accurate statement, saying all choices are wrong isn’t correct either.